Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Declining admissions to drag down revenues in 2011
- Home entertainment options grow at the expense of cinemas
- Declining home video industry revenues lead to fewer Hollywood releases
- Hollywood renegotiating distribution windows
- Vertical integration: the future of the film industry?
- Digital conversion opens new revenue opportunities for exhibitors
- Exhibitors struggle with declining attendance
- RealD dominates domestic 3D market
- Movie sites and ad distributors a growing part of the cinema business
- Theaters offer enhanced experiences to get viewers off the couch
- Targeted experiences for diverse audiences
- Exhibitors need to market the cinema experience
- Preshow as content and branding tool
- Affluent, kids, teens, and 18-24s attend most frequently
- Kids, 12-24s drive opening weekends
- Product placement, movie theater ads effective when handled with care
- Bringing mom or dad
- Onsite purchase still far and away the norm
- Old media, new media used to find showtimes, locations
- Soda and popcorn for the young and young at heart
- Location, location, location
- Serious competition from home screenings
- Those age 12-24 show greatest interest in 3D
- Minority groups show greater affection for cinematic experience
- Frequent attendees spend more, want more
Insights and Opportunities
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- Customize and upscale cinema for older and higher income audiences
- It’s not just seeing a film
- Movie theaters as event spaces
Inspire Insights
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- Inspire Trend: “Let’s Make a Deal”
Market Size and Forecast
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- Declining admissions drag down revenues in 2011
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- Figure 1: Total domestic revenues of movie theater operators, at current prices, 2006-16
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- Figure 2: Total domestic revenues of movie theater operators at inflation-adjusted prices,* 2006-16
- Fan chart forecast
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- Figure 3: Total revenues and fan chart forecast of movie theater operators, at current prices, 2006-16
Competitive Context
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- Key points
- The Couch
- Streaming libraries
- Facebook and YouTube
- Kiosk rentals
- More households have true home theater capabilities
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- Figure 4: Types of televisions owned, 2006-10
- Digital transmission capacity growing
- The couch goes 3D
- Cinematic video games compete with movies for core demographics
- Vertical integration: the future of the film industry?
Market Drivers
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- Key points
- Digital conversion opens new revenue opportunities
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- Figure 5: Installed analog, digital, and 3D U.S. movie screens, 2006-10
- 3D and larger big screens drive attendance, pricing
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- Figure 6: U.S. and Canadian box office, by 2D/3D presentations, 2006-10
- Time spent watching videos at home growing across all formats
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- Figure 7: Screen time at home, 2010-11
- Home video revenues in flux lead to fewer Hollywood releases
- Hollywood renegotiating distribution windows
- Exhibitors push back against shrinking windows
- Experiments with release windows move forward
Segment Performance
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- Cinema advertising fastest-growing revenue stream through 2010
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- Figure 8: Movie theater sales, by revenue stream, 2008 and 2010
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- Figure 9: U.S. sales and forecast of movie theater operators, by revenue stream, 2006-16
Segment Performance—Admissions
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- 2009 breaks trend as growth is driven by admissions
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- Figure 10: Sales of movie tickets at box office, 2006-16
- Admissions in long-term decline
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- Figure 11: Movie theater admissions and average ticket prices, 2002-11
Segment Performance—Concessions
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- Concessions revenues plummet in 2011
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- Figure 12: Sales of theater concessions, 2006-16
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- Figure 13: Theater concessions per patron, 2006-16
Segment Performance—Cinema Advertising
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- Cinema advertising stumbles in 2011
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- Figure 14: Sales of cinema advertising*, 2006-16
Leading Companies
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- Key points
- Cinemark capitalizes on early digital conversion strategy
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- Figure 15: U.S. Ticket sales, by theater exhibitor, 2008 and 2010
- Megaplexes continue to outperform smaller theaters
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- Figure 16: Selected statistics for major U.S. theater exhibitors, 2010
- Bigger screens on the rise
- IMAX
- RealD dominates domestic 3D market, but competition is stiff
- The Competition
- Ticket vendors
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- Figure 17: Traffic to movie portal websites, Oct. 2009–Dec. 2010
- IMDb and Fandango most popular with 18-34s
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- Figure 18: Use of movie portal websites in last 30 days among adults, by age, Oct. 2009–Dec. 2010
- Fandango/Movies.com
- Movietickets.com/moviefone.com
- Ad distributors
- NCM
- Screenvision Cinema Network
Innovation and Innovators
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- Key points
- Enhanced experiences to get viewers off the couch
- Preshow as content
- Targeted experiences appeal to diverse audiences
- Live and interactive experiences bring new excitement to the cinema
Marketing Strategies
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- Key points
- Exhibitors need to market the cinema experience
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- Figure 19: Ad spend by major exhibitors, 2008-10
- Theaters brand themselves in preshow
Attendance and Frequency of Attendance
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- Key points
- Age is central factor determining attendance
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- Figure 20: Attended movies in past six months, by age, Oct. 2009–Dec. 2010
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- Figure 21: Number of films seen in past 90 days, by age, Oct. 2009–Dec. 2010
- Penetration nearly universal among teens and kids
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- Figure 22: Attended movies in past six months, adults vs. teens, Oct. 2009–Dec. 2010
- Figure 23: Attended movies in past three months, kids age 6-11, Oct. 2009–Dec. 2010
- 12-24s are sweet spot of market
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- Figure 24: Number of films seen in past 90 days, teens vs. adults vs. kids, Oct. 2009–Dec. 2010
- Figure 25: Number of films seen in past 90 days, teens vs. kids, by gender and age, Oct. 2009–Dec. 2010
- The role of affluence
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- Figure 26: Attended movies in past six months, by household income, Oct. 2009–Dec. 2010
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- Figure 27: Number of films seen in past 90 days, by household income, Oct. 2009–Dec. 2010
Timing of Attendance
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- Key points
- The importance of the early attendee
- Timing of attendance age-based
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- Figure 28: Timing of movie attendance among adults, by age, Oct. 2009–Dec. 2010
- Teens vie with 18-24s for most avid early attendees
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- Figure 29: Timing of movie attendance, adults vs. teens, Oct. 2009–Dec. 2010
- One in three kids see movies soon after opening
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- Figure 30: Timing of movie attendance, among children, by age, Oct. 2009–Dec. 2010
Attitudes Toward Product Placement and In-Theater Ads
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- Key points
- 18-34s notice ads and commercials
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- Figure 31: awareness of ads and commercials in theaters, among adults, by age, Oct. 2009–Dec. 2010
- Teens show high awareness of ads and commercials
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- Figure 32: Awareness of ads and commercials in theaters, among teens, by gender, Oct. 2009–Dec. 2010
- Brand placement most attractive to 25-34s
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- Figure 33: Attitudes toward brand names in movies, by age, Oct. 2009–Dec. 2010
Theater Chain Visited
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- Key points
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- Figure 34: Theater chain visited in past six months, by age, Oct. 2009–Dec. 2010
Children’s Role in Driving Attendance
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- Key points
- Kids play a major decision-making role in movies they see
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- Figure 35: Children’s role in selecting movies, by age, Oct. 2009–Dec. 2010
- Most kids see films with parents
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- Figure 36: Children’s companions at the theater, by age, Oct. 2009–Dec. 2010
- Parents attend more often
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- Figure 37: Attended movies in past six months, by presence of children in household, Oct. 2009–Dec. 2010
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- Figure 38: Number of films seen in past 90 days, by presence of children in household, Oct. 2009–Dec. 2010
Method of Ticket Purchase
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- Key points
- Nine in 10 purchase movie tickets at the theater
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- Figure 39: Method of ticket purchase, by age, March 2011
- Machine or online purchases rise with income
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- Figure 40: Method of ticket purchase, by household income, March 2011
- Households with kids more likely to purchase online or by machine
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- Figure 41: Method of ticket purchase, by presence of children in the household, March 2011
Finding Showtimes and Locations
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- Key points
- Over two thirds use websites, online services, phone apps
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- Figure 42: Method of finding showtimes and locations, by age, March 2011
- Use of online information sources tends to increase with income
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- Figure 43: Method of finding showtimes and locations, by household income, March 2011
- Internet ticketing sites widely used by parents
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- Figure 44: Method of finding showtimes and locations, by presence of children in household, March 2011
Spend on Food, Drink, Games, and Merchandise
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- Key points
- Concessions drive margins
- Popcorn and drinks still by far most popular purchase
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- Figure 45: Spend on food, drink, games, and merchandise, by age, March 2011
- Kids spur spend on concessions and arcade games
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- Figure 46: Spend on food, drink, games, and merchandise, by children in the household, March 2011
- Younger moviegoers willing to invest in extras
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- Figure 47: Willingness to pay a premium for special services, by age, March 2011
Theater Selection
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- Key points
- Location and convenience top factors in theater selection
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- Figure 48: Factors in theater selection, March 2011
- Differences by age groups limited
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- Figure 49: Factors in theater selection, by age, March 2011
The Call of the Home
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- Key points
- Only one in five systematically prefers attending theater
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- Figure 50: Preference for movie theater vs. at-home screenings, by gender, March 2011
- Older respondents more likely to prefer at-home viewing
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- Figure 51: Preference for movie theater vs. at-home screenings, by age, March 2011
- Lower-income households more likely to prefer at-home viewing
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- Figure 52: Preference for movie theater vs. at-home screenings, by household income, March 2011
- Those without children more likely to prefer seeing movies at home
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- Figure 53: Preference for movie theater vs. at-home screenings, by presence of children in household, March 2011
- Control of experience and cost of tickets keep people at home
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- Figure 54: Reasons for preferring home screenings, March 2011
- Even highest income groups see tickets as overpriced
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- Figure 55: Reasons for preferring home screenings, by household income, March 2011
- Families most likely to consider home better for movie watching
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- Figure 56: Reasons for preferring home screenings, by children in the household, March 2011
The 3D Experience
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- Key points
- Younger, more frequent attendees show greater preference for 3D
- Interest in 3D is age-based
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- Figure 57: Preference for 3D screenings, by age, Oct. 2009–Dec. 2010
- Teens keen on 3D
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- Figure 58: Preference for 3D screenings, teens vs. adults, Oct. 2009–Dec. 2010
Impact of Race and Hispanic Origin
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- Key points
- Asians stand out as frequent attendees
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- Figure 59: Attended movies in past six months, by race/Hispanic origin, Oct. 2009–Dec. 2010
- Figure 60: Number of films seen in past 90 days, by race/Hispanic origin, Oct. 2009–Dec. 2010
- Minorities head out for opening weekends
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- Figure 61: Timing of attendance in film’s theatrical run, by race/Hispanic origin, Oct. 2009–Dec. 2010
- Asians most interested in 3D
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- Figure 62: Interest in 3D screenings, by race/Hispanic origin, Oct. 2009–Dec. 2010
- Asians most likely to purchase tickets online
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- Figure 63: Method of ticket purchase, by race/Hispanic origin, March 2011
- Asians and Hispanics most likely to turn to ticketing sites for information
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- Figure 64: Method of finding showtimes and locations, by race/Hispanic origin, March 2011
- Minorities make more purchases at the theater
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- Figure 65: Spend on food, drink, games, and merchandise, by race/Hispanic origin, March 2011
- Blacks most selective about theaters, Asians prioritize high-tech projection
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- Figure 66: Factors in theater selection, by race/Hispanic origin, March 2011
- Minorities keen on special services
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- Figure 67: Willingness to pay a premium for special services, by race/Hispanic origin, March 2011
- Asians and Hispanics most likely to prefer theater experience
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- Figure 68: Preference for home screenings vs. theater attendance, by race/Hispanic origin, March 2011
- Minority groups pay more attention to ads and commercials
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- Figure 69: Awareness of ads and commercials in theaters, among adults, by race/Hispanic origin, Oct. 2009–Dec. 2010
- Minorities more likely to buy and use brands seen in movies
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- Figure 70: Attitudes toward brand names in movies, by race/Hispanic origin, Oct. 2009–Dec. 2010
Custom Consumer Groups: The Frequent Attendee
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- Key points
- Avid moviegoers seek coffee, alcohol, food, and memorabilia
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- Figure 71: Spend on food, drink, games, and merchandise, by frequency of attendance, March 2011
- Avid movie-goers want good food and drink
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- Figure 72: Factors in theater selection, by frequency of attendance, March 2011
- Avid moviegoers ready to pay more for ease of ordering and eating food
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- Figure 73: Willingness to pay a premium for special services, by frequency of attendance, March 2011
Cluster Analysis
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- Budgeters
- Demographics
- Characteristics
- Opportunities
- The Mainstream
- Demographics
- Characteristics
- Opportunities
- Spenders
- Demographics
- Characteristics
- Opportunities
- Cluster characteristic tables
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- Figure 74: Movie theater clusters, March 2011
- Figure 75: Frequency of attendance, by movie theater clusters, March 2011
- Figure 76: Purchases at the theater, by movie theater clusters, March 2011
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- Figure 77: Factors in theater selection, by movie theater clusters, March 2011
- Figure 78: Interest in premium services, by movie theater clusters, March 2011
- Cluster demographic tables
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- Figure 79: Movie theater clusters, by gender, March 2011
- Figure 80: Movie theater clusters, by age, March 2011
- Figure 81: Movie theater clusters, by household income, March 2011
- Figure 82: Movie theater clusters, by race, March 2011
- Figure 83: Movie theater clusters, by Hispanic origin, March 2011
- Cluster methodology
Appendix: Other Useful Consumer Tables
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- Figure 84: Love going to the movies among teens, by gender, Oct. 2009–Dec. 2010
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- Figure 85: Love going to the movies among teens, by age, Oct. 2009–Dec. 2010
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- Figure 86: Factors in theater selection, by household income, March 2011
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- Figure 87: Factors in theater selection, by children in the household, March 2011
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- Figure 88: Reasons for preferring home screening over theater attendance, by age, March 2011
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- Figure 89: Spending on food, drink, games, and merchandise, by household income, March 2011
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Appendix: Trade Associations
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